Shares of GameStop Corp. (NYSE: GME) saw a dramatic rise of more than 60% on Tuesday, following a significant 74% surge on Monday. The stock witnessed a peak increase of 110% on Monday and underwent multiple trading halts due to volatility. This resurgence coincides with the return of Keith Gill, also known as “Roaring Kitty,” who was pivotal in sparking the original meme stock frenzy in 2021. Despite a lackluster performance year-to-date prior to this week, GameStop’s shares have now ascended over 180% in the past month, excluding Tuesday’s pre-market gains.
The rally extended to other stocks as well, with AMC Entertainment Holdings Inc. (NYSE: AMC) seeing a sharp increase of up to 120% on Tuesday before trimming those gains. AMC disclosed in an SEC filing that it had issued approximately 72.5 million new shares, raising around $250 million. Additional stocks experiencing premarket surges included SunPower Corporation (NASDAQ: SPWR), up 73%, Beyond Meat Inc. (NASDAQ: BYND), rising 12%, and The Children’s Place Inc. (NASDAQ: PLCE), which increased almost 10%. Nicholas Colas of DataTrek Research remarked that the trading dynamics are reminiscent of early 2021’s severe short squeeze in GameStop. However, the magnitude of the current rally pales in comparison to January 2021’s rise, which saw GameStop’s stock escalate by 1500%. Short interest in GameStop remains high, with S3 Partners reporting that 24% of the float is sold short as of Monday. Ihor Dusaniwsky of S3 Partners highlighted that short sellers of GameStop are down over $1.3 billion in losses for May, exacerbated by Monday’s surge. This revival of meme stocks continues to highlight the undercurrent of retail traders challenging institutional investors, reflecting a persisting theme of individual investors versus financial elites.